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The Brent oil price smashed through support last night and is targeting its 2015 lows. The price as I write is at $45.05 and the chart is now ugly:
The big downtrend line is re-established and support broken in the mid-$46s. Lows in the $43s are next and then $40 in my view.
The triggers last night were both strategic and tactical. Bad Chinese data formed a nasty backdrop, then US DOE data was a double blow as inventories jumped:
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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific's leading geo-politics and economics portal.
He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.